With Labor Day near, promo drums beat loudly
David Perry, Executive Editor -- Furniture Today, August 27, 2007
As the important Labor Day sales loom, we are betting that bedding's hot spot will be the center of attention. We are talking about sleep sets retailing from $399 to $699.
That is a critical part of the market, and it's one that's important to consumers in all key demographic groups, as our consumer research clearly demonstrates. We reviewed some of the highlights of that research in our seminar at the recent Las Vegas Market — thanks to all of you who came — and it's worth reviewing here.
Forty percent of U.S. households spent between $300 and $799 on bedding in 2006, according to our 2007 Consumer Buying Trends Survey. The breakdown: 10% spent from $300 to $399, 15% spent from $400 to $599, and another 15% spent from $600 to $799.
The macro view: 73% of households are spending less than $1,000 on bedding. The median for all households is $600.
There was plenty of introductory action in Las Vegas at hot promotional price points. One of the more intriguing examples was at Comfort Solutions, which unveiled an "overstuffed, underpriced" promotion. Two lines were offered, one with open-coil construction retailing from $499 to $699, the other an encased coil line retailing from $599 to $799. All of the beds include visco-elastic foam.
The symbol of that promotion — a very plump seal — is an unusual one, and it was selected to help Comfort Solutions stand out from the competition in a crowded market. President Dave Roberts said retailers liked the promotion and appreciate what Comfort Solutions is offering them.
"Once you get consumers in the door," Roberts said of the reasons for the sharply priced beds, "you don't want them walking out without a receipt."
Or, as the promotion notes: "It's all the right stuff to seal the deal."
Other companies offering strong promotional values in Las Vegas included Serta, which debuted a $399 pillowtop, and Therapedic, which unveiled a new Kathy Ireland line retailing from $499 to $699.
Price points like those are going to be all over the newspapers this weekend when the Labor Day sales begin. Yes, we all want to sell more beds at higher price points. But when times are tough, as they are now, the industry always ratchets prices down and stresses value. Hey, we've got to do what we've got to do.
Good luck with your Labor Day sales!
Contact David Perry at dperry@reedbusiness.com
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